According to shopper intelligence firm Catalina, private brand new item launches are outpacing that of national CPG brands during the pandemic, despite fewer new product rollouts overall.
Catalina’s latest data reports that the private brand categories that saw the greatest growth in new product releases since the COVID-19 pandemic began include: frozen potatoes/baked (up 191%), pre-packaged breakfast sausage (up 173%), disinfectant cleaners (up 135%), baking ingredients (up 115%), contraceptives (up 97%), and home health testing, which includes COVID-19 kits and face masks (up 120%).
“Overall, retailers are seeking to engage shoppers who may once again be turning to private brands as they did during the early days of the pandemic when name brand shortages prompted trial,” said Phyllis Johnson, senior director of private brand development at Catalina. “I predict this could be a second chance for those retailers to effectively demonstrate the value of private brands and convert shoppers to loyal private brand buyers.”
One category, ready-to-eat cereal, saw a 48% decrease in new product introductions for private brands compared to a 53% decrease for national brands in 2020 compared to the same period in 2019. In 2021, new product introductions for private brands increased by 66% while national brand launches declined by 35%.
The data from Catalina refutes some ideas that there has been less innovation happening among store brands due to supply chain issues.
The cookie category experienced a 66% decline in new product introductions for private brands vs. a 57% decrease for national brands in 2020, compared to 2019. But in 2021, new product introductions for private brands grew by 60% while national brands declined by 22%.
During the same period, the dry cat food category experienced a 44% decline in new product introductions for private brands vs. a mere 5% decrease for national brands in 2020. In 2021, new product introductions for private brands were up 13% while national brands declined by 8%.
The full report can be found here.